“When the barbarians are at the gates, interest rates rise and bond prices fall precipitously.”

— William J. Bernstein

Source: The Four Pillars of Investing (2002), Chapter 1, No Guts, No Glory, p. 13.

Adopted from Wikiquote. Last update June 3, 2021. History

Help us to complete the source, original and additional information

Do you have more details about the quote "When the barbarians are at the gates, interest rates rise and bond prices fall precipitously." by William J. Bernstein?

William J. Bernstein 29

economist 1948

Related quotes

“When credit is expanding, the rising price level and high profits bring about a high rate of interest. When the expansion has reached, the limit permitted by the stock of gold, the rate of interest is put still higher in order to bring about a fall in the price level. When the fall in prices takes effect, a low rate of interest becomes appropriate, and when credit contraction has proceeded so far that a redundant supply of gold has accumulated, the rate of interest is depressed still lower in order to bring about a renewed rise in the price level. Thus a high rate of interest corresponds first with rising, then with falling, prices, and so synchronizes with high prices. A low rate of interest corresponds first with falling, and then with rising, prices, and so synchronizes with low prices.”

Ralph George Hawtrey (1879–1975) British economist

Ralph George Hawtrey, quoted in Irving Fisher, The Theory of Interest (1930), Chapter 19. The Relation of Interest to Money and Prices

“The bond price, and, as an arithmetical and rigid consequence, the interest rate is an inherently restless variable.”

G. L. S. Shackle (1903–1992) British economist

Source: Epistemics and Economics. (1972), p. 201

“If a rise in wages does not raise prices, a fall will not reduce them.”

Joan Robinson book An Essay on Marxian Economics

Source: An Essay on Marxian Economics (Second Edition) (1966), Chapter X, Real And Money Wages, p. 89

“Where the army is, prices are high; when prices rise the wealth of the people is exhausted.”

Sun Tzu (-543–-495 BC) ancient Chinese military general, strategist and philosopher from the Zhou Dynasty

Source: The Art of War, Chapter II · Waging War

“Government spending cannot create additional jobs. If the government provides the funds required by taxing the citizens or by borrowing from the public, it abolishes on the one hand as many jobs as it creates on the other. If government spending is financed by borrowing from the commercial banks, it means credit expansion and inflation. If in the course of such an inflation the rise in commodity prices exceeds the rise in nominal wage rates, unemployment will drop. But what makes unemployment shrink is precisely the fact that real wage rates are falling.”

Ludwig von Mises book Socialism

Socialism (1922), Epilogue (1947)

“We assume…that the banking system must be prepared to expand (or contract) the total supply of money to the extent necessary to prevent any scarcity (or plenty) of funds in the capital market which may be induced by any other disturbing factor, from causing a rise (or fall) in interest rates”

James Meade (1907–1995) British economist

James Meade (1951), The theory of international economic policy, Vol. 1, p. 48; as cited in: Jacques Jacobus Polak (2001) The Two Monetary Approaches to the Balance of Payments, p. 13